Financial Stability
Return to Glass-Steagall essential: Kansas City Fed’s Hoenig
Kansas City Federal Reserve president Thomas Hoenig says reform only scratches the surface without basic separation of investment, commercial banking activity for biggest banks
Higher capital rules don’t restrict capacity to lend: Bank’s Miles
Bank of England external rate-setter David Miles takes issue with linking tougher capital stance to reduced ability to lend; says Bank should not rush to temper inflation
RBNZ triggers contingency plans as earthquake strikes
Reserve Bank of New Zealand says it is collaborating with private sector to provide cash to earthquake-hit areas
Bank’s Tucker: crisis shames us all
Bank of England deputy governor Paul Tucker says financial crisis was worst moment in officials’ lives
Choice of payment method affects inflation: Bank of Canada paper:
Bank of Canada study charts influence of credit purchases on inflation, monetary policy
Australia’s Stevens uncertain on response to commodity boom
Reserve Bank of Australia governor Glenn Stevens concerned over appropriate policy response to commodity boom
UK FSA’s Turner calls for more radical reform
Financial Services Authority chairman Adair Turner argues that only if reform tempers the cyclical nature of credit and asset cycles can it truly be regarded as successful
Countercyclical buffer could be big help to output: BIS paper
Research by the Bank for International Settlements says Basel III’s countercyclical capital buffer could have “sizable” hand in preventing output falls
€100 billion of caja loans could go bad: Bank of Spain
Bank of Spain releases details of savings banks’ exposures to real estate sector, levels of provisions; says reforms have addressed slew of underlying problems
ECB calls for return to stricter growth and stability pact
European Central Bank calls for reversion of Stability and Growth Pact 2005 amendments, which relaxed compliance conditions; says sanctions on member states should be applied more stringently
CEPR paper identifies root cause of sovereign debt crises
Centre for Economic Policy Research study finds country indebtedness, quality of governance and ability to weather shocks are determinants of sovereign debt crises
RBI’s Chakrabarty: banks must embrace technology
Reserve Bank of India deputy governor Kamalesh Chandra Chakrabarty says technology should play a greater role in banks’ strategic plans
G20 leaders pinpoint indicators for global imbalance guidelines
G20 central bankers, finance minister set out indicators to be used in assessing imbalances
FSB outlines progress on national resolution regimes
Financial Stability Board says work on building framework for national resolution regimes well under way; loss absorbency measures for global sifis on schedule
Bahraini bankers criticised central bank in lead-up to crisis: WikiLeak
WikiLeak alleges some economists and bankers dissatisfied with Central Bank of Bahrain's slow reaction to real-estate sector problems
Bundesbank slams idea of using ESM to buy government debt
Bundesbank says using enlarged European Stability Mechanism to buy government bonds of troubled countries will place more burden on taxpayers
Fed's Raskin on debit card reform
Federal Reserve board member Sarah Raskin outlines regulatory changes in debit card industry
Monetary policy effects on housing bubble: Bank paper
Bank of England study measures impact of monetary policy and capital inflows on housing activity
Endogenous debt crises: CEPR paper
Centre for Economic Policy Research study says reckless borrowers pose greater threat of sovereign default than poor economic growth
Basel alone will not protect us: UK Treasury Committee’s Tyrie
UK Treasury Select Committee chair Andrew Tyrie says fundamental changes to the way banks are supervised a must; tripartite system left no one in charge
Beijing downplays hot money flows
China’s State Administration of Foreign Exchange says hot money flows are “ant-like” relative to size of economy; analysts say results downplay risks of emerging markets overheating
Zhou and Carstens new co-heads of IIF crisis prevention group
People’s Bank of China governor Zhou Xiaochuan and Bank of Mexico governor Agustín Carstens to co-head Group of Trustees at Institute of International Finance working group
Household attitudes are changing: RBA’s Lowe
Reserve Bank of Australia assistant governor Philip Lowe says restraint in household consumption may be a long-term trend